FEE, C. EDWARD; HADLOCK, CHARLES J.; THOMAS, SHAWN - In: Journal of Finance 61 (2006) 3, pp. 1217-1251
We assemble a sample of over 10,000 customer-supplier relationships and determine whether the customer owns equity in the supplier. We find that factors related to both contractual incompleteness and financial market frictions are important in the decision of a customer firm to take an equity...